<general_context>
	- Current date: 2026-11-06 21:04 UTC.
</general_context>
<company_context>
	- Ticker: LYTS.
	- Company: LSI.
</company_context>


                <data>
                    <label>Press release on fiscal Q1 2027 financial results</label>
                    <content>### **Exhibit 99.1**
[IMAGE: a01.jpg | Source: a01.jpg]
**LSI INDUSTRIES REPORTS FISCAL 2027 FIRST QUARTER RESULTS**
**AND DECLARES QUARTERLY CASH DIVIDEND**
**CINCINNATI, Nov. 5, 2026** – LSI Industries Inc. \(Nasdaq: LYTS, “LSI” or the “Company”\) a leading U.S. based manufacturer of commercial lighting and display solutions, today reported financial results for the fiscal 2027 first quarter ended September 30, 2026.
**<u>FISCAL 2027 FIRST QUARTER RESULTS</u>**
|  | ●<br><br> | Net Sales of $225.9 million, \\\+44% y/y<br><br> |
|  | ●<br><br> | Net Income $7.1 million; Adjusted Net Income $11.6 million<br><br> |
|  | ●<br><br> | Diluted EPS of $0.19; Adjusted Diluted EPS of $0.31<br><br> |
|  | ●<br><br> | EBITDA of $20.7 million; Adjusted EBITDA of $22.2 million<br><br> |
|  | ●<br><br> | Free Cash Flow of $13.8 million or 62% of Adjusted EBITDA<br><br> |
|  | ●<br><br> | Ratio of net debt to proforma TTM Adjusted EBITDA of 2.6x<br><br> |
LSI reported fiscal first quarter net sales of $225.9 million, an increase of 44% versus the prior year period, including contributions from the acquisition of Royston Group \(“Royston”\) in March 2026.  Net sales excluding contributions from the Royston acquisition, declined 2% compared to the prior-year period, due to demand softness within the North American non-residential lighting market.
The Company reported net income of $7.1 million, or $0.19 per diluted share in the first quarter, while adjusted net income was $11.6 million or $0.31 per adjusted diluted share. Fiscal first quarter adjusted EBITDA was $22.2 million, an increase of 41% versus the prior year period.  The adjusted EBITDA margin rate was 9.8% of net sales in the quarter. Reconciliations of GAAP to non-GAAP financial measures, including adjusted EBITDA are included in the schedules of this release.
LSI generated strong free cash flow of $13.8 million in the fiscal first quarter, with free cash conversion as a percentage of adjusted EBITDA exceeding 60% driven by sustained profitability and working capital discipline.  LSI reduced its total net debt outstanding by $14.3 million in the fiscal first quarter, when compared to the fiscal fourth quarter 2026, resulting in a ratio of net debt to proforma trailing twelve-month adjusted EBITDA of 2.6x as of September 30, 2026.  LSI exited the first quarter with cash and availability on its credit facility totaling $122.6 million
The Company declared a quarterly cash dividend of $0.05 per share payable on November 24, 2026, to shareholders of record on November 16, 2026.
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LSI Industries Fiscal 2027 First Quarter Results

November 5, 2026
**<u>MANAGEMENT COMMENTARY</u>**
“During the first quarter, we continued to advance the integration of Royston as we build a leading, retail branding solutions platform of scale across North America,” stated James A. Clark, President and CEO of LSI. “While cost inflation and elevated interest rates remain potential headwinds for non-residential construction activity, demand across our key vertical markets remains resilient early into fiscal 2027. We remain focused on expanding cross-selling opportunities across the combined LSI-Royston customers within our core refueling/c-store, grocery, and QSR markets, while continuing to scale a differentiated, one-stop solutions portfolio that is realizing a greater share of wallet across leading, multi-site retail chains.  As we move forward executing the cross-selling opportunity afforded by the addition of Royston, our efforts combined to generate first quarter sales growth of 44%, increased adjusted EBITDA of 41%, and free cash flow of $13.8 million.  We continue to see significant opportunities for driving improved operating leverage, consistent with our value-compounding business model.”
“Within our Display Solutions segment, first quarter sales increased more than 80% versus the prior year, while on an organic basis, excluding Royston-related contributions, sales increased 1%.  Our refueling/c-store and grocery vertical markets continue to experience elevated demand and project activity, while demand from QSR customers remains soft, consistent with recent quarters.  Within the refueling/c-store vertical, sales increased 5% versus the prior year, supported by demand across several of our largest customers.  This includes renovation of pilot sites for an existing customer, representing the early phase of a proposed large scale renovation program.
Further, the 2,500 refueling/c-store site refresh for a major oil company customer announced last quarter continues to proceed as planned, with activity expected to steadily ramp throughout fiscal 2027 and into fiscal 2028.  Sales into the grocery vertical remain at a high level led by check stand and display case product sales across a broad customer base.
“On a standalone basis, Royston delivered solid first quarter performance, with sales increasing 8% and adjusted EBITDA margin expanding 100 basis points sequentially from fiscal fourth quarter 2026, reflecting early gains from recently launched initiatives to accelerate growth and enhance operating efficiency. In early October, we formally launched our *Category of One* marketing campaign to customers at the annual NACS \(National Association of Convenience Stores\) tradeshow, one of the largest retail-focused trade events in the United States.  We highlighted the value of our integrated solutions portfolio to key decision-makers across our core end-markets.  Customer response was highly positive, confirming the significant growth opportunity with both existing and new accounts.”
“Display Solutions segment order rates in the fiscal first quarter increased 4% compared to the prior year,” continued Clark. “Orders within the Refueling/C-store and Grocery verticals increased 5% and 12%, respectively in the first quarter, driven by project activity at large national chains. While order activity across the QSR vertical remains soft, one of our large QSR customers recently approved a 3,000-store interior renovation program and selected LSI as one of three providers. The program is scheduled to begin late in the third quarter of fiscal 2027 and is expected to continue over three years.”
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LSI Industries Fiscal 2027 First Quarter Results

November 5, 2026
“Our proforma backlog increased 4% year-over-year led by favorable order activity in refueling/c-store and grocery.  Customers are incurring challenges meeting project renovation schedules as we approach the seasonal slowdown we typically experience as our customers pause activity ahead of the holiday season, when consumer traffic increases.  As a result, we are managing higher levels of both delayed site releases and changes to product delivery and installation requirements.
“To support Display Solutions projects requiring products built to customer specifications, LSI manages a network of manufacturing facilities located throughout the United States and Canada.  Recently, we announced the consolidation of manufacturing operations from our leased facility in Collingwood, Ontario, into an existing Toronto-area facility that serves as the headquarters of our Canada’s Best Store Fixtures business.  This consolidation will enhance service for our Canadian customers while reducing infrastructure costs.  The transfer will occur in the fiscal second and third quarters, after which the Collingwood facility will be vacated.  We expect this transition to be seamless to our customers and generate annual cost savings of over $1.0 million.
“Within our Lighting segment, net sales declined 6% from the prior year, reflecting soft demand across the broader commercial and industrial markets,” Clark continued. “Performance varied by market vertical, with growth in refueling, sports, and banking applications offset by declines in several larger verticals where LSI maintains a strong position, including parking, small retail, warehouse, and automotive applications.
“Lighting segment gross margin improved in the first quarter despite lower sales volumes, reflecting focused price actions in response to cost inflation,” noted Clark. “Segment project quote activity remained stable both sequentially and year over year, while the segment’s book-to-bill ratio was steady at 1.0 and orders increased 1% compared to the prior-year period.”
Clark concluded: “Our team executed well in the fiscal first quarter, delivering another quarter of profitable growth, strong free cash flow conversion, and debt reduction. Demand across most vertical markets remains healthy early into fiscal 2027, even as inflationary pressures create a more challenging operating environment. Our customers are prioritizing investments in consumer experiences, with an increasing emphasis on modernizing physical environments, enhancing brand identity, improving customer engagement, and driving higher traffic and conversion. We are encouraged by the early progress of the Royston integration and believe our *Category of One* value proposition continues to resonate with customers across our targeted verticals. Our deep, long-standing customer relationships, market-leading positions, and integrated solutions position us to deliver profitable growth through the cycle, consistent with our proven track record of long-term value creation.”
**FISCAL 2027 FIRST QUARTER CONFERENCE CALL**
A conference call will be held today at 11:00 A.M. ET to review the Company’s financial results and conduct a question-and-answer session.
A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of LSI Industries’ website at <u>www.lsicorp.com</u>. Individuals can also participate by teleconference dial-in. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software.
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LSI Industries Fiscal 2027 First Quarter Results

November 5, 2026
Details of the conference call are as follows:
| \*\*Domestic Live:\*\*<br><br> | 877-407-4018<br><br> |
| \*\*International Live:\*\*<br><br> | 201-689-8471<br><br> |
To listen to a replay of the teleconference, which subsequently will be available through November 19, 2026:
| \*\*Domestic Replay:\*\*<br><br> | 844-512-2921<br><br> |
| \*\*International Replay:\*\*<br><br> | 412-317-6671<br><br> |
| \*\*Conference ID:\*\*<br><br> | 13763442<br><br> |
**ABOUT LSI INDUSTRIES**
Headquartered in Cincinnati, LSI is a publicly held company traded over the NASDAQ Stock Exchange under the symbol LYTS. The company manufactures advanced lighting, graphics, and display solutions across strategic vertical markets. The company’s American-made products, which include non-residential indoor and outdoor lighting, print graphics, digital graphics, refrigerated and custom displays, help create value for customer brands and enhance the consumer experience. LSI also provides comprehensive project management services in support of large-scale product rollouts. The company employs approximately 3,000 people at 23 manufacturing plants in the U.S. and Canada. Additional information about LSI is available at <u>www.lsicorp.com</u>.
**FORWARD-LOOKING STATEMENTS**
Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the federal securities laws and is intended to receive the protections of such laws.
All statements, other than historical facts, included or incorporated in this release could be deemed forward-looking statements, particularly statements that reflect our expectations or beliefs of LSI Industries Inc. \(the “Company,” “LSI,” “we,” or “us”\) concerning future events or our future financial performance. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by discussions of strategy, plans, or intentions or by the use of words such as “may,” “would,” “could,” “should,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” “plan,” “forecast,” “project,” “predict,” “potential,” “continue,” or “intend,” the negative or other variants of such terms, or other comparable terminology.
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LSI Industries Fiscal 2027 First Quarter Results

November 5, 2026
The Company cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations as a result of various factors, including, but not limited to: the impact of competitive products and services; product and pricing demands and market acceptance risks; LSI’s reliance on third-party manufacturers and suppliers; substantial changes to the refueling and convenience store and grocery markets; LSI’s stock price volatility and market volatility in the debt and equity markets; potential costs associated with litigation, other proceedings and regulatory compliance; LSI’s ability to adequately protect intellectual property, information technology security threats and computer crime; financial difficulties experienced by customers; the cyclical and seasonal nature of our business; the failure of acquisitions or acquired companies to achieve their plans or objectives generally; our ability to consummate, successfully integrate, and achieve strategic and other objectives, including any expected synergies, relating to pending or recently completed acquisitions; the inability to effectively execute our business strategies; the ability to retain key employees, including key employees of acquired businesses; labor shortages or an increase in labor costs; changes in product mix; unfavorable economic, political, and market conditions, including interest rate fluctuations and inflation; changes in U.S. trade policy, including mitigating the impacts of increased costs related to tariffs; the results of asset impairment assessments; price increases of materials; significant shortages of materials; shortages in transportation and increases in fuel prices; sudden or unexpected changes in customer creditworthiness; write-offs or impairment of capitalized costs or intangible assets in the future; and the other risk factors LSI describes from time to time in the Company’s Annual Report on Form 10-K \(the “Form 10-K”\) and in other reports filed with or furnished to the U.S. Securities and Exchange Commission \(the "SEC"\) by the Company. You should carefully consider the trends, risks, and uncertainties described in this news release, the Form 10-K, and other reports filed with or furnished to the SEC by the Company before making any investment decision with respect to our securities. If any of these trends, risks, or uncertainties continues or occurs, our business, financial condition, or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment.
Forward-looking statements are made in the context of information available as of the date of this news release and are based on our current expectations, forecasts, estimates, and assumptions. The Company undertakes no obligation to update or revise such statements to reflect circumstances or events occurring after this news release except as may be required by applicable law. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
**INVESTOR & MEDIA CONTACT**
Noel Ryan or Fred Buonocore
720.778.2415
<u>LYTS@vallumadvisors.com</u>
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LSI Industries Fiscal 2027 First Quarter Results

November 5, 2026
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*​\*\*<br><br> |
| <i>\*\*\*<u>\\\\\\\(Unaudited\\\\\\\)</u>\*\*\*</i><br><br> | \*\*​\*\*<br><br> | \*\*​September 30\*\*<br><br> | \*\*​September 30\*\*<br><br> | \*\*​September 30\*\*<br><br> | \*\*​September 30\*\*<br><br> | \*\*​September 30\*\*<br><br> | \*\*​September 30\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*\*\\\(In thousands, except per share data\\\)\*\*\*<br><br> | \*\*​\*\*<br><br> | \*\*2026\*\*<br><br> | \*\*2026\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\* \*\*2025\*\*<br><br> | \*\*​\*\* \*\*2025\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​Net sales\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*225,855\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*157,249\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Cost of products sold\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*173,624\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*116,972\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Gross profit\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*52,231\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*40,277\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Selling and administrative costs\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*38,070\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*29,305\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Operating income\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*14,161\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*10,972\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Other expense\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*115\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*530\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Interest expense, net\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*3,860\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*747\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Income before taxes\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*10,186\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*9,695\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Income tax\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*3,059\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*2,431\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Net income\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*7,127\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*7,264\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*<u>​Weighted Average Common Shares Outstanding</u>\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​Basic\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*37,189\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*30,449\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​Diluted\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*37,888\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*31,381\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*<u>​Earnings Per Share</u>\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Basic\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.19\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.24\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Diluted\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.19\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.23\*\*<br><br> | \*\*​\*\*<br><br> |
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LSI Industries Fiscal 2027 First Quarter Results

November 5, 2026
| ​<br><br> | ​<br><br> | \*\*\*\\\(amounts in thousands\\\)\*\*\*<br><br> | \*\*\*\\\(amounts in thousands\\\)\*\*\*<br><br> | \*\*\*\\\(amounts in thousands\\\)\*\*\*<br><br> | \*\*\*\\\(amounts in thousands\\\)\*\*\*<br><br> | \*\*\*\\\(amounts in thousands\\\)\*\*\*<br><br> | \*\*\*\\\(amounts in thousands\\\)\*\*\*<br><br> | ​<br><br> |
| ​<br><br> | ​<br><br> | \*\*September 30,\*\*<br><br> | \*\*September 30,\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*June 30,\*\*<br><br> | \*\*June 30,\*\*<br><br> | ​<br><br> |
| ​<br><br> | ​<br><br> | \*\*2026\*\*<br><br> | \*\*2026\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*2026\*\*<br><br> | \*\*2026\*\*<br><br> | ​<br><br> |
| \*\*Current assets\*\*<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*288,270\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*295,885\*\*<br><br> | ​<br><br> |
| \*\*Property, plant and equipment, net\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*55,418\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*56,714\*\*<br><br> | ​<br><br> |
| \*\*Other assets\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*469,470\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*477,265\*\*<br><br> | ​<br><br> |
| \*\*Total assets\*\*<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*813,158\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*829,864\*\*<br><br> | ​<br><br> |
| ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*Current maturities of long-term debt\*\*<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*10,000\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*10,000\*\*<br><br> | ​<br><br> |
| \*\*Other current liabilities\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*134,279\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*139,919\*\*<br><br> | ​<br><br> |
| \*\*Long-term debt\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*230,195\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*245,931\*\*<br><br> | ​<br><br> |
| \*\*Other long-term liabilities\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*70,639\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*73,337\*\*<br><br> | ​<br><br> |
| \*\*Shareholders' equity\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*368,045\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*360,677\*\*<br><br> | ​<br><br> |
| ​<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*813,158\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*829,864\*\*<br><br> | ​<br><br> |
**<u>Three Months Ended September 30, 2026, Results</u>**
Net sales for the three months ended September 30, 2026, of $225.9 million increased 44% from the three months ended September 30, 2025, net sales of $157.2 million.  Lighting Segment net sales of $64.8 million decreased 6% from prior year’s first quarter net sales of $69.1 million and Display Solutions Segment net sales of $161.0 million increased 83% from prior year’s first quarter net sales of $88.2 million. Net income for the three months ended September 30, 2026, was $7.1 million, or $0.19 per share, compared to $7.3 million or $0.23 per share for the three months ended September 30, 2025.  Earnings per share represent diluted earnings per share.
**<u>Balance Sheet</u>**
The balance sheet at September 30, 2026, included current assets of $288.3 million, current liabilities of $144.3 million and working capital of $144.0 million, which includes cash of $12.8 million.  The current ratio was 2.0 to 1.  The balance sheet included shareholders’ equity of $368.0 million and long-term debt of $230.2 million.  It is the Company’s priority to continuously generate sufficient cash flow, coupled with an approved credit facility, to adequately fund operations.
**<u>Cash Dividend Actions</u>**
The Board of Directors declared a regular quarterly cash dividend of $0.05 per share in connection with the first quarter of fiscal 2027, payable November 24, 2026, to shareholders of record as of the close of business on November 16, 2026. The indicated annual cash dividend rate is $0.20 per share. The Board of Directors has adopted a policy regarding dividends which provides that dividends will be determined by the Board of Directors in its discretion based upon its evaluation of earnings both on a GAAP and non-GAAP basis, cash flow requirements, financial condition, debt levels, stock repurchases, future business developments and opportunities, and other factors deemed relevant by the Board.
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LSI Industries Fiscal 2027 First Quarter Results

November 5, 2026
**<u>Non-GAAP Financial Measures</u>**
This press release includes adjustments to GAAP operating income, net income, and earnings per share for the three months ended September 30, 2026, and 2025. Operating income, net income, and earnings per share, which exclude the impact of long-term performance-based compensation expense, the amortization expense of acquired intangible assets, commercial growth opportunity expense, acquisition costs, the lease expense on the step-up basis of acquired leases, and restructuring and severance costs, are non-GAAP financial measures.  We further note that while the amortization expense of acquired intangible assets is excluded from the measures, the revenue of the acquired companies is reflected in the measures, and the acquired assets contribute to revenue generation. We exclude these items because we believe they are not representative of the ongoing results of the operations of the business. Also included in this press release are non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization \(EBITDA and Adjusted EBITDA\), Net Debt to Adjusted EBITDA, Free Cash Flow, and organic sales growth.  We believe that these are useful as supplemental measures in assessing the operating performance of our business.  These measures are used by our management, including our chief operating decision maker, to evaluate business results, and are frequently referenced by those who follow the Company.  These non-GAAP measures may be different from non-GAAP measures used by other companies.  In addition, the non-GAAP measures are not based on any comprehensive set of accounting rules or principles.  Non-GAAP measures have limitations, in that they do not reflect all amounts associated with our results as determined in accordance with U.S. GAAP.  Therefore, these measures should be used only to evaluate our results in conjunction with corresponding GAAP measures.  Below is a reconciliation of these non-GAAP measures to net income and earnings per share reported for the periods indicated, along with the calculation of EBITDA, Adjusted EBITDA, Free Cash Flow, Net Debt to Adjusted EBITDA, and organic sales growth.
Page 8 of 11

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LSI Industries Fiscal 2027 First Quarter Results

November 5, 2026
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*\*\\\(Unaudited\\\)\*\*\*<br><br> | \*\*​\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*\*\\\(In thousands, except per share data\\\)\*\*\*<br><br> | \*\*​\*\*<br><br> | \*\*2026\*\*<br><br> | \*\*2026\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*2025\*\*<br><br> | \*\*2025\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*% Change\*\*<br><br> | \*\*% Change\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Net sales\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*225,855\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*157,249\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*44\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Operating income as reported\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*14,161\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*10,972\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*29\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Long-term performance based compensation\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*1,049\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*1,282\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Amortization expense of acquired intangible assets\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*3,779\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*1,554\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Acquisition costs\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*252\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*220\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Lease expense on the step-up basis of acquired leases\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*152\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*68\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Severance costs and restructuring costs\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*13\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*\\\(71\*\*<br><br> | \*\*\\\)\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Operating income as adjusted\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*19,406\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*14,025\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*38\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Net income as reported\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*7,127\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*7,264\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-2\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Net income as adjusted\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*11,602\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*9,731\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*19\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Earnings per share \\\(diluted\\\) as reported\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.19\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.23\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-18\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Earnings per share \\\(diluted\\\) as adjusted\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.31\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.31\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*\*\\\(In thousands, except per share data\\\)\*\*\*<br><br> | \*\*​\*\*<br><br> | \*\*2026\*\*<br><br> | \*\*2026\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*2025\*\*<br><br> | \*\*2025\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*Diluted\*\*<br><br> | \*\*Diluted\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*Diluted\*\*<br><br> | \*\*Diluted\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Reconciliation of net income to adjusted net income\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*EPS\*\*<br><br> | \*\*EPS\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*EPS\*\*<br><br> | \*\*EPS\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Net income as reported\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*7,127\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.19\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*7,264\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.23\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Long-term performance based compensation\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*787\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*0.03\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*954\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*0.03\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Amortization expense of acquired intangible assets\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*2,853\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*0.08\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*1,117\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*0.04\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Acquisition costs\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*189\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*165\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Lease expense on the step-up basis of acquired leases\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*114\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*51\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Severance costs and restructuring costs\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*10\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*\\\(53\*\*<br><br> | \*\*\\\)\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Foreign currency transaction loss on intercompany loan\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*14\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*326\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*0.01\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Tax rate difference between reported and adjusted net income\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*508\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*0.01\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*\\\(93\*\*<br><br> | \*\*\\\)\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Net income adjusted\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*11,602\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.31\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*9,731\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*0.31\*\*<br><br> | \*\*​\*\*<br><br> |
Page 9 of 11

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LSI Industries Fiscal 2027 First Quarter Results

November 5, 2026
The foreign currency transaction loss on intercompany loan relates to an intercompany loan established as a result of the acquisition of Canada’s Best Holdings as a method to repatriate cash generated in Canada to the United States without being subject to a withholding penalty.
| \*\*​\*\* \*\*\*​\\\(Unaudited; In thousands\\\)\*\*\*<br><br> | ​<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | ​<br><br> |
| \*\*Net Income to Adjusted EBITDA\*\* ​<br><br> | ​<br><br> | \*\*​\*\* \*\*September 30\*\*<br><br> | \*\*​\*\* \*\*September 30\*\*<br><br> | \*\*​\*\* \*\*September 30\*\*<br><br> | \*\*​\*\* \*\*September 30\*\*<br><br> | \*\*​\*\* \*\*September 30\*\*<br><br> | \*\*​\*\* \*\*September 30\*\*<br><br> | \*\*​\*\* \*\*September 30\*\*<br><br> | \*\*​\*\* \*\*September 30\*\*<br><br> | \*\*​\*\* \*\*September 30\*\*<br><br> | \*\*​\*\* \*\*September 30\*\*<br><br> | ​<br><br> |
| \*\*Net Income to Adjusted EBITDA\*\* ​<br><br> | ​<br><br> | \*\*2026\*\*<br><br> | \*\*2026\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*2025\*\*<br><br> | \*\*2025\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*% Change\*\*<br><br> | \*\*% Change\*\*<br><br> | ​<br><br> |
| \*\*Net Income as reported\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*7,127\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*7,264\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*Income tax\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*3,059\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*2,431\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*Interest expense, net\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*3,860\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*747\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*Other expense\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*115\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*530\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*Operating income as reported\*\*<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*14,161\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*10,972\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*29\*\*<br><br> | \*\*%\*\*<br><br> |
| ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*Depreciation and amortization\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*6,540\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*3,200\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*EBITDA\*\*<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*20,701\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*14,172\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*46\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*Long-term performance based compensation\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*1,049\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*1,282\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*Acquisition costs\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*252\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*220\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*Lease expense on the step-up basis of acquired leases\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*152\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*68\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*Severance costs and restructuring costs\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*13\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*\\\(71\*\*<br><br> | \*\*​\\\)\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*Adjusted EBITDA\*\*<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*22,167\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*15,671\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | \*\*41\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*Adjusted EBITDA as a percentage of sales\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*9.8\*\*<br><br> | \*\*​%\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*10.0\*\*<br><br> | \*\*%\*\*<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| ​ \*\*\*\\\(Unaudited; In thousands\\\)\*\*\*<br><br> | ​<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> | \*\*Three Months Ended\*\*<br><br> |  |
| \*\*Free Cash Flow\*\*<br><br> | ​<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> | \*\*September 30\*\*<br><br> |  |
| \*\*Free Cash Flow\*\*<br><br> | ​<br><br> | \*\*2026\*\*<br><br> | \*\*2026\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*2025\*\*<br><br> | \*\*2025\*\*<br><br> | ​<br><br> | \*\*% Change\*\*<br><br> | ​<br><br> |
| \*\*Cash flow from operations\*\*<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*15,231\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*676\*\*<br><br> | ​<br><br> | \*\*N/M\*\*<br><br> |  |
| ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> | ​<br><br> |
| \*\*Capital expenditures\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*\\\(1,444\*\*<br><br> | \*\*\\\)\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*\\\(967\*\*<br><br> | \*\*\\\)\*\*<br><br> | ​<br><br> | ​<br><br> |
| \*\*Free cash flow\*\*<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*13,787\*\*<br><br> | ​<br><br> | ​<br><br> | \*\*$\*\*<br><br> | \*\*\\\(291\*\*<br><br> | \*\*\\\)\*\*<br><br> | \*\*N/M\*\*<br><br> |  |
| \*\*Net Debt to Adjusted EBITDA Ratio\*\*<br><br> | \*\*​\*\*<br><br> | \*\*September 30,\*\*<br><br> | \*\*September 30,\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*June 30,\*\*<br><br> | \*\*June 30,\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*\*\\\(amounts in thousands\\\)\*\*\*<br><br> | \*\*​\*\*<br><br> | \*\*2026\*\*<br><br> | \*\*2026\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*2026\*\*<br><br> | \*\*2026\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Current maturity of long-term debt\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*10,000\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*10,000\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Long-term debt\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*230,195\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*245,931\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Total debt\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*240,195\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*255,931\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Less: cash\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*\\\(12,805\*\*<br><br> | \*\*\\\)\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*\\\(14,249\*\*<br><br> | \*\*\\\)\*\*<br><br> |
| \*\*Net debt\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*227,390\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*241,682\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Adjusted EBITDA - trailing twelve months\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*87,640\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*89,027\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Net debt to adjusted EBITDA ratio\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*2.6\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*2.7\*\*<br><br> | \*\*​\*\*<br><br> |
Page 10 of 11

---
LSI Industries Fiscal 2027 First Quarter Results

November 5, 2026
| \*\*Organic compared to Inorganic Sales\*\*<br><br> | \*\*​\*\*<br><br> | \*\*Q1 2027\*\*<br><br> | \*\*Q1 2027\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*Q1 2026\*\*<br><br> | \*\*Q1 2026\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*% Variance\*\*<br><br> | \*\*% Variance\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Lighting Segment\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*64,823\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*69,053\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-6\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*Display Solutions Segment\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​- Comparable Display Solutions Sales\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*88,620\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*88,196\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*1\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*​- Royston\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*72,412\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*n/m\*\*<br><br> | \*\*n/m\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​Total Display Solutions Sales\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*161,032\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*88,196\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*83\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*Total net sales\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*225,855\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*157,249\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*44\*\*<br><br> | \*\*%\*\*<br><br> |
| \*\*Less:\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*​- Royston\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*72,412\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*n/m\*\*<br><br> | \*\*n/m\*\*<br><br> | \*\*​\*\*<br><br> |
| \*\*Total organic net sales\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*153,443\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*$\*\*<br><br> | \*\*157,249\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*​\*\*<br><br> | \*\*-2\*\*<br><br> | \*\*%\*\*<br><br> |
Page 11 of 11</content>
                </data>
            

                <data>
                    <label>LYTS 10-Q, date: 2026-11-06 21:04 UTC</label>
                    <content>UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q

Commission File No. 0-13375

Securities registered pursuant to Section 12(b) of the Act:

Indicate by checkmark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes☒ NO ☐ Indicate by checkmark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ NO ☐ Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐NO ☒ As of October 30, 2026, there were 37,321,843shares of the registrant's common stock, no par value per share, outstanding.

LSI INDUSTRIES INC. FORM 10-Q FOR THE QUARTER ENDED September 30, 2026 INDEX

Page 3

<div align='center'>PART I.FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS

LSI INDUSTRIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)</div>

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

<div align='center'>Page 4

LSI INDUSTRIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)</div>

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

<div align='center'>Page 5

LSI INDUSTRIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)</div>

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

<div align='center'>Page 6

LSI INDUSTRIES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)</div>

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

<div align='center'>Page 7

LSI INDUSTRIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)</div>

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

<div align='center'>Page 8

LSI INDUSTRIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)</div>

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

<div align='center'>Page 9

LSI INDUSTRIES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)</div>

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

<div align='center'>Page 10</div>

LSI INDUSTRIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 - INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The interim condensed consolidated financial statements are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, and rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the interim financial statements include all normal adjustments and disclosures necessary to present fairly the Company’s financial position as of September 30, 2026, the results of its operations for the three-month periods ended September 30, 2026, and 2025, and its cash flows for the three-month periods ended September 30, 2026, and 2025. These statements should be read in conjunction with the financial statements and footnotes included in the fiscal 2026 Annual Report on Form 10-K. Financial information as of June 30, 2026, has been derived from the Company’s audited consolidated financial statements.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation:

A summary of the Company’s significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company’s fiscal 2026 Annual Report on Form 10-K.

Revenue Recognition:

The Company recognizes revenue when it satisfies the performance obligation in its customer contracts or purchase orders. Most of the Company’s products have a single performance obligation which is satisfied at a point in time when control is transferred to the customer. Control is generally transferred at the time of shipment when title and risk of ownership passes to the customer. For customer contracts with multiple performance obligations, the Company allocates the transaction price and any discounts to each performance obligation based on relative standalone selling prices. Payment terms are typically within 30 to 90 days from the shipping date, depending on the terms with the customer. The Company offers standard warranties that do not represent separate performance obligations.

Installation is a separate performance obligation, except for the Company’s digital signage products. For digital signage products, installation is not a separate performance obligation as the product and installation is the combined item promised in digital signage contracts. The Company is not always responsible for installation of products it sells and has no post-installation responsibilities other than standard warranties.

A number of the Company's display solutions and select lighting products are customized for specific customers. As a result, these customized products do not have an alternative use. For these products, the Company has a legal right to payment for performance to date and generally does not accept returns on these items. The measurement of performance is based upon cost plus a reasonable profit margin for work completed. Because there is no alternative use and there is a legal right to payment, the Company transfers control of the item as the item is being produced and therefore recognizes revenue over time. The customized product types are as follows:

The Company also offers installation services for its display solutions elements and select lighting products. Installation revenue is recognized over time as the customer simultaneously receives and consumes the benefits provided through the installation process.

For these customized products and installation services, revenue is recognized using a cost-based input method: recognizing revenue and gross profit as work is performed based on the relationship between the actual cost incurred and the total estimated cost for the performance obligation.

Page 11

On occasion, the Company enters into bill-and-hold arrangements on a limited basis. Each bill-and-hold arrangement is reviewed and revenue is recognized only when certain criteria have been met: (i) the customer has requested delayed delivery and storage of the products by the Company because the customer wants to secure a supply of the products but lacks storage space; (ii) the risk of ownership has passed to the customer; (iii) the products are segregated from the Company’s other inventory items held for sale; (iv) the products are ready for shipment to the customer; and (v) the Company does not have the ability to use the products or direct them to another customer.

Disaggregation of Revenue

The Company disaggregates the revenue from contracts with customers by the timing of revenue recognition because the Company believes it best depicts the nature, amount, and timing of its revenue and cash flows. The table below presents a reconciliation of the disaggregation by reportable segments:

Practical Expedients and Exemptions

Page 12

New Accounting Pronouncements:

In November 2024,the FASB issued Accounting Standards Update 2024-03, Income Statement – Reporting Comprehensive Income: Disaggregation of Income Statement Expenses (ASU 2024-03). This ASU requires disaggregated income statement expense disclosures on an annual and interim basis, including inventory purchases, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains these expenses. The standard also requires disclosure of total selling expenses on an annual and interim basis, and the definition of those expenses disclosed annually. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026and interim reporting periods beginning after December 15, 2027,and maybe applied prospectively or retrospectively. The Company is evaluating the impact of ASU 2024-03 and expects the standard will only impact its disclosures with no material impact to the consolidated financial statements

NOTE 3—ACQUISITION OF ROYSTON GROUP

On February 20, 2026the Company entered into an agreement and a plan of merger to acquire SRR Holdings, Inc. (Royston) which was completed on March 24, 2026.Royston is a leading U.S.-based designer and manufacturer of cabinetry and store fixtures, refrigerated and heated cases, and signage for multiple end markets. Royston’s customer base spans across large, attractive end-markets of convenience, grocery and gas stations and other retail. Royston was acquired for $ million; $ million in cash and $ million in the Company’s common stock, subject to a working capital adjustment, which was finalized in the first quarter of the 2027 fiscal year for $ million returned to Company. The Company prefunded $ million as an estimate of the cash and working capital acquired, followed by a $ million refund in the first quarter of fiscal 2027, which brings the total purchase consideration to $ million. The Company incurred acquisition-related costs totaling $ million which are included in the selling and administrative expense line of the consolidated statements of operations. The Company funded the purchase consideration totaling $ million with a combination of cash on hand, approximately $ million of the $ million revolving line of credit, the $ million five-year term loan, and the $ million of net proceeds from the Company’s February 26, 2026public common stock offering.

The Company accounted for this transaction as a business combination. The Company has allocated the purchase price of $ million, which includes an estimate of customary post-closing purchase price adjustments to the assets acquired and liabilities assumed at estimated fair values, and the excess of the purchase price over the aggregate fair values is recorded as goodwill. This allocation is subject to the final determination of the purchase price which will be finalized in fiscal 2027, as well as potential revision resulting from the finalization of pre-acquisition tax filings and net working capital adjustments. The Company has finalized the third-party valuations of certain assets including fixed assets and intangible assets. The allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed as of March 24, 2026,is as follows:

The gross amount of accounts receivable is $ million.

Page 13

Goodwill recorded from the acquisition of Royston is attributable to the impact of the positive cash flow from Royston in addition to expected synergies from the business combination. As a result of the acquisition, goodwill of $ million recognized in the United States is expected to be deductible for tax purposes. The intangible assets include amounts recognized for the fair value of the trade name, technology assets, non-compete agreements and customer relationships. The fair value of the intangible assets was determined based upon the income (discounted cash flow) approach. The following table presents the details of the intangible assets acquired at the date of acquisition:

Royston’s post-acquisition results of operations for the period from July 1, 2026,through September 30, 2026,are included in the Company’s Condensed Consolidated Statements of Operations. Since the acquisition date, net sales of Royston for the period from July 1, 2026,through September 30, 2026,were $ million and operating income was $ million. The operating results of Royston are included in the Display Solutions Segment.

Pro Forma Impact of the Acquisition of Royston(Unaudited)

The following table represents unaudited pro forma results of operations and gives effect to the acquisition of Royston as if the transaction had occurred on July 1, 2024.The unaudited pro forma results of operations have been prepared for comparative purposes only and are not necessarily indicative of what would have occurred had the business combination been completed at the beginning of the period or the results that mayoccur in the future. Furthermore, the unaudited pro forma financial information does not reflect the impact of any synergies or operating efficiencies resulting from the acquisition of Royston.

The unaudited pro forma financial information for the three months ended September 30, 2025,is prepared using the acquisition method of accounting and has been adjusted to reflect the pro forma events that are: (1) directly attributable to the acquisition; (2) factually supportable; and (3) expected to have a continuing impact on the combined results. The unaudited pro forma operating income for the three months ended September 30, 2025of $ million excludes acquisition-related expenses of $ million.

Page 14

NOTE 4- SEGMENT REPORTING INFORMATION

The accounting guidance on Segment Reporting establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in financial statements. Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker (the Company’s Chief Executive Officer or “CODM”) in making decisions on how to allocate resources and assess performance. The Company’s two operating segments are Lighting and Display Solutions, with one executive leadership team reporting directly to the CODM with responsibilities for managing the performance across the segments.

The Company’s methods for measuring profitability under GAAP on a reportable segment basis and used by the CODM to assess performance is adjusted net income. These measurements are used to monitor performance compared to prior periods and forecasted results. The CODM does not look at disaggregated expenses at the segment level. The CODM does review expenses on a consolidated basis which is consistent with the categories of expense reported on the consolidated statements of operations.

The Lighting Segment includes non-residential outdoor and indoor lighting fixtures utilizing LED light sources that have been fabricated and assembled for the Company’s markets, primarily the refueling and convenience store markets, parking lot and garage markets, quick-service restaurant market, retail and grocery store markets, the automotive market, the warehouse market, and the sports court and field market. The Company also services lighting product customers through the commercial and industrial project, stock and flow, and renovation channels. In addition to the manufacture and sale of lighting fixtures, the Company offers a variety of lighting controls to complement its lighting fixtures which include sensors, photocontrols, dimmers, motion detection and Bluetooth systems. The Lighting Segment also includes the design, engineering and manufacturing of electronic circuit boards, assemblies and sub-assemblies which are sold directly to customers.

The Display Solutions Segment manufactures, sells and installs exterior and interior visual image and display elements, including printed graphics, structural graphics, digital signage, non-digital signage, menu board systems, millwork and metal display fixtures, refrigerated displays, heated displays, food equipment, countertops, and other custom display elements. These products are used in visual image programs in several markets including the refueling and convenience store markets, quick-service and casual restaurant market, retail and grocery store, and other retail markets. The Company accesses its customers primarily through a direct sale model utilizing its own sales force. Sales through distribution represent a small portion of Display Solutions sales. The Display Solutions Segment also provides a variety of project management services to complement our display elements, such as installation management, site surveys, permitting, and content management which are offered to our customers to support our digital signage.

The Company’s corporate administration activities are reported in the Unallocated corporate expenses net of tax line item. These activities primarily include expense related to certain corporate officers and support staff, the Company’s internal audit staff, expense related to the Company’s Board of Directors, equity compensation expense for various equity awards granted to corporate administration employees, certain consulting expenses, investor relations activities, and a portion of the Company’s legal, auditing, and professional fee expenses. Corporate identifiable assets primarily consist of cash, invested cash (if any), refundable income taxes (if any), and deferred income taxes.

There were customers or customer programs representing a concentration of 10% or more of the Company’s consolidated net sales in the three months ended September 30, 2026, or 2025. There was concentration of accounts receivable at September 30, 2026, or 2025.

Page 15

Summarized financial information for the Company’s operating segments is provided for the indicated periods and as of September 30, 2026, and September 30, 2025:

Page 16

The segment net sales reported above represent sales to external customers. Identifiable assets are those assets used by each segment in its operations.

Page 17

NOTE 5- EARNINGS PER COMMON SHARE

The following table presents the amounts used to compute basic and diluted earnings per common share, as well as the effect of dilutive potential common shares on weighted average shares outstanding:

Page 18

NOTE 6 – INVENTORIES, NET

The following information is provided as of the dates indicated:

NOTE 7 - ACCRUED EXPENSES

The following information is provided as of the dates indicated:

NOTE 8 - GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying values of goodwill and other intangible assets with indefinite lives are reviewed at least annually for possible impairment. The Company mayfirst assess qualitative factors in order to determine if goodwill and indefinite-lived intangible assets are impaired. If through the qualitative assessment it is determined that it is more likely than not that goodwill and indefinite-lived assets are not impaired, no further testing is required. If it is determined more likely than not that goodwill and indefinite-lived assets are impaired, or if the Company elects not to first assess qualitative factors, the Company’s impairment testing continues with the estimation of the fair value of the reporting unit using a combination of a market approach and an income (discounted cash flow) approach, at the reporting unit level. The estimation of the fair value of the reporting unit requires significant management judgment with respect to revenue and expense growth rates, changes in working capital and the selection and use of an appropriate discount rate. The estimates of the fair value of reporting units are based on the best information available as of the date of the assessment. The use of different assumptions would increase or decrease estimated discounted future operating cash flows and could increase or decrease an impairment charge. Company management uses its judgment in assessing whether assets mayhave become impaired between annual impairment tests. Indicators such as adverse business conditions, economic factors and technological change or competitive activities maysignal that an asset has become impaired.

The Company identified its reporting units in conjunction with its annual goodwill impairment testing. The Company has a total of eight reporting units that contain goodwill. One reporting unit is within the Lighting Segment and seven reporting units are within the Display Solutions Segment. The tradename intangible assets have an indefinite life and are also tested separately on an annual basis. The Company relies upon a number of factors, judgments and estimates when conducting its impairment testing including, but not limited to, the Company’s stock price, operating results, forecasts, anticipated future cash flows, and marketplace data. There are inherent uncertainties related to these factors and judgments in applying them to the analysis of goodwill impairment.

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The following table presents information about the Company's goodwill on the dates or for the periods indicated:

The gross carrying amount and accumulated amortization by each major intangible asset class is as follows:

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The Company expects to record annual amortization expense as follows:

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NOTE 9 - DEBT

The Company’s long-term debt as of September 30, 2026, and June 30, 2026, consisted of the following:

In Marchof 2026, the Company entered into a $ million senior secured credit facility consisting of a $ million five-year term loan and a $ million revolving credit facility. The Company is required to make quarterly amortization payments of $ million against the term loan, with the balance of the term loan due at maturity on March 24, 2031.The revolving credit facility is also scheduled to expire on March 24, 2031.Interest on the term loan and any loans made under the revolving credit facility is based on the Secured Overnight Financing Rate (“SOFR”) or a customary base rate (which mayinclude Daily Simple SOFR or the Prime Rate), to be determined by reference to customary market benchmarks, plus an applicable margin that is anticipated to vary based on the Company’s consolidated total net leverage ratio, which is calculated to be consolidated funded debt minus unrestricted cash and cash equivalents against earnings before interest, taxes, depreciation, and amortization (“EBITDA”), as defined in the line of credit agreement. As of September 30, 2026, the interest rate applicable to the term loan was % and the Company’s borrowing rate against its revolving line of credit was %. The increment over the SOFR borrowing rate is basis points for the first quarter of fiscal year 2027. In addition to interest on outstanding amounts, the Company also pays a commitment fee on the unused balance of the revolving credit facility, which fluctuates between and basis points based on the Company’s consolidated total net leverage ratio. Under the terms of the credit agreement, the Company is required to comply with a financial covenant that limits the ratio of indebtedness and unrestricted cash to EBITDA measured on a quarterly basis, with a maximum net leverage ratio of to 1.00 at closing, which then steps down to to 1.00 as of the fiscal quarter ending December 31, 2026and which further steps down to to 1.00 in the fiscal quarter ending September 30, 2027.The Company is also required to maintain an interest coverage ratio, measured on a quarterly basis, equal to or above the minimum set forth in the agreement, which as of closing was to 1.00. As of September 30, 2026, there was $ million available for borrowing under the credit facility for general business purposes.

The Company is in compliance with all of its loan covenants as of September 30, 2026.

NOTE 10 - CASH DIVIDENDS

The Company paid cash dividends of $ million and $ million for the three months ended September 30, 2026, and September 30, 2025, respectively. Dividends on restricted stock units in the amount of $ million and $ million were accrued as of both September 30, 2026, and 2025, respectively. These dividends will be paid upon the vesting of the restricted stock units when shares are issued to the award recipients. In November 2026,the Board of Directors declared a regular quarterly cash dividend of $ per share payable November 24, 2026,to shareholders of record as November 16, 2026.The indicated annual cash dividend rate is $ per share.

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NOTE 11 – EQUITY COMPENSATION

In November 2022,the Company's shareholders approved the amendment and restatement of the 2019 Omnibus Award Plan ("2019 Omnibus Plan") which increased the number of shares authorized for issuance under the plan by and removed the Plan's fungible share counting feature. The purpose of the 2019 Omnibus Plan is to provide a means to attract and retain key personnel and to align the interests of the directors, officers, and employees with the Company's shareholders. The plan also provides a vehicle whereby directors and officers mayacquire shares in order to meet the ownership requirements under the Company's Stock Ownership Policy. The 2019 Omnibus Plan allows for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”), performance stock units ("PSUs") and other awards. Except for RSU grants which are time-based, participants in the Company's Long-Term Equity Compensation Plans are awarded the opportunity to acquire shares over a three-year performance measurement period tied to specific company performance metrics. The number of shares that remain reserved for issuance under the 2019 Omnibus Plan is as of September 30, 2026.

In the three months ended September 30, 2026, the Company granted PSUs and RSUs, both with a weighted average market value of $. Stock compensation expense was $ million for the three months ended September 30, 2026, and 2025, respectively.

In Novemberof 2021, our board of directors approved the LSI Employee Stock Purchase Plan (“ESPP”). A total of shares of common stock were provided for issuance under the ESPP. Employees mayparticipate at their discretion and are able to purchase, through payroll deduction, common stock at a % discount on a quarterly basis. Employees mayend their participation at any time during the offering period, and participation ends automatically upon termination of employment with the Company. During fiscal year 2027, employees purchased shares. At September 30, 2026, shares remained available for purchase under the ESPP.

NOTE 12 - SUPPLEMENTAL CASH FLOW INFORMATION

NOTE 13- COMMITMENTS AND CONTINGENCIES

The Company is party to various negotiations, customer bankruptcies, and legal proceedings arising in the normal course of business. The Company provides reserves for these matters when a loss is probable and reasonably estimable. The Company does not disclose a range of potential loss because the likelihood of such a loss is remote. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations, cash flows or liquidity.

The Company recorded a $ million contingent liability related to the future earnout payments as part of the acquisition of Canada’s Best Holding (CBH), which is classified as short term. The $ million represents the value of the earnout converted from its functional currency to USD as of September 30, 2026, and June 30, 2026, respectively.

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NOTE 14- LEASES

The Company leases certain manufacturing facilities along with a small office space, several forklifts, several small tooling items, and various items of office equipment. The Company’s leases are operating leases and have a remaining term of one to nine years, some of which have an option to renew. The Company does not assume renewals in determining the lease term unless the renewals are deemed reasonably certain. The lease agreements do not contain any material residual guarantees or material variable lease payments.

The Company has periodically entered into short-term operating leases with an initial term of twelve months or less. The Company elected not to record these leases on the balance sheet. The rent expense for these leases was immaterial for September 30, 2026, and 2025. As of September 30, 2026 and 2025, the Company has no finance leases.

The Company has certain leases that contain lease and non-lease components and has elected to utilize the practical expedient to account for these components together as a single lease component.

Lease expense is recognized on a straight-line basis over the lease term. The Company used its incremental borrowing rate when determining the present value of lease payments.

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NOTE 15–INCOME TAXES

The Company's effective income tax rate is based on expected income, statutory rates, and tax planning opportunities available in the various jurisdictions in which it operates. For interim financial reporting, the Company estimates the annual income tax rate based on projected taxable income for the full year and records a quarterly income tax provision or benefit in accordance with the anticipated annual rate. The Company refines the estimates of the year's taxable income as new information becomes available, including actual year-to-date financial results. This continual estimation process often results in a change to the expected effective income tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected income tax rate. Significant judgment is required in determining the effective tax rate and in evaluating tax positions. For the three months ended September 30, 2026 the effective tax rate is higher than the statutory tax rate primarily because of the non-deductible tax treatment of executive compensation.

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NOTE 16–SUBSEQUENT EVENTS

In Octoberof 2026, the Company announced the consolidation of manufacturing operations of our leased facility in Collingwood, Ontario, into an existing Toronto-area facility that serves as the headquarters of our Canada’s Best Store Fixtures business. The transition is expected to be completed in the third quarter of fiscal 2027, after which the Company will vacate the Collingwood Ontario facility.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Note About Forward-Looking Statements

This report includes estimates, projections, statements relating to our business plans, objectives, and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may appear throughout this report, including this section. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “focus,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially. We describe risks and uncertainties that could cause actual results and events to differ materially in our Annual Report on Form 10-K in the following sections: “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures about Market Risk,” and “Risk Factors.” All of those risks and uncertainties are incorporated herein by reference. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand the results of operations and financial condition of LSI Industries Inc. MD&A is provided as a supplement to, and should be read in conjunction with, our Annual Report on Form 10-K for the year ended June 30, 2026, and our financial statements and the accompanying Notes to Financial Statements (Part I, Item 1 of this Form 10-Q).

Our condensed consolidated financial statements, accompanying notes and the “Safe Harbor” Statement, each as appearing earlier in this report, should be referred to in conjunction with this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Summary of Consolidated Results

Net sales of $225.9 million for the three months ended September 30, 2026, increased 44% as compared to net sales of $157.2 million for the three months ended September 30, 2025. Lighting segment net sales of $64.8 million decreased 6% compared to prior year quarter net sales of $69.1 million. The 6% decline in net sales reflects soft demand across the broader commercial and industrial markets. Net sales in the Display Solutions segment of $161.0 million increased 83% compared to the same quarter last year sales of $88.2 million. The Company’s acquisition of Royston contributed most of the increase in Display Solutions segment sales. Excluding Royston sales, net sales increased 1%. Quarter-over-quarter sales to the refueling/c-store and grocery verticals increased and were partially offset by softness in the quick service restaurant ("QSR") vertical.

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Operating income of $14.2 million for the three months ended September 30, 2026, represents a 29% increase in operating income from $11.0 million in the three months ended September 30, 2025. Adjusted operating income, a Non-GAAP measure, was $19.4 million in the three months ended September 30, 2026, represents a 38% increase compared to $14.0 million in the three months ended September 30, 2025. Refer to “Non-GAAP Financial Measures” below for a reconciliation of Non-GAAP financial measures to U.S. GAAP measures. The increase in operating income is primarily the result of an increase in net sales in the Display solutions segment driven mostly by the impact of the Royston acquisition.

Non-GAAP Financial Measures

This report includes adjustments to GAAP operating income, net income, and earnings per share for the three months ended September 30, 2026, and 2025. Operating income, net income, and earnings per share, which exclude the impact of long-term performance-based compensation expense, the amortization expense of acquired intangible assets, commercial growth opportunity expense, acquisition costs, the lease expense on the step-up basis of acquired leases, restructuring and severance costs, and organic sales growth are non-GAAP financial measures. We further note that while the amortization expense of acquired intangible assets is excluded from the non-GAAP financial measures, the revenue of the acquired companies is included in the measures, and the acquired assets contribute to the generation of revenue. We believe these non-GAAP measures will provide increased transparency to our core operating performance of the business. Also included in this report are non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA and Adjusted EBITDA), Net Debt to Adjusted EBITDA, and Free Cash Flow. We believe that these are useful as supplemental measures in assessing the operating performance of our business. These measures are used by our management, including our chief operating decision maker, to evaluate business results, and are frequently referenced by those who follow the Company. These non-GAAP measures may be different from non-GAAP measures used by other companies. In addition, the non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations, in that they do not reflect all amounts associated with our results as determined in accordance with U.S. GAAP. Therefore, these measures should be used only to evaluate our results in conjunction with corresponding GAAP measures.

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The following represents the income tax effects of the adjustments in the tables above, which were calculated using the estimated combined U.S., Canada and Mexico effective income tax rates for the periods indicated (in thousands):

$262

$926

$3

$63

$38

$328

$437

($18)

$55

$17

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Page 29</div>

Adjusted EBITDA for the trailing twelve months ended September 30, 2026, includes proforma results for the Royston acquisition.

Results of Operations

THREE MONTHS ENDEDSeptember 30, 2026, COMPARED TO THREE MONTHS ENDEDSeptember 30, 2025

Display Solutions Segment net sales of $161.0 million in the three months ended September 30, 2026, increased 83% from net sales of $88.2 million in the same period in fiscal 2026. The Company’s acquisition of Royston contributed to most of the increase in Display Solutions segment sales. Excluding Royston sales, net sales increased 1%. Quarter-over-quarter sales to the refueling/c-store and grocery verticals increased and were partially offset by softness in the QSR vertical.

Gross profit of $30.4 million in the three months ended September 30, 2026, increased 78% from the same period of fiscal 2026. Gross profit as a percentage of net sales in the three months ended September 30, 2026, decreased to 18.9% from 19.4% in the same period of fiscal 2026. The decrease in gross profit as a percentage of sales was the result of increased material input costs in several product lines, and customer mix. The Company continues to maintain favorable program pricing and prudent cost management.

Operating expenses of $17.4 million in the three months ended September 30, 2026, increased from $8.5 million from the same period of fiscal 2026, primarily driven by the acquisition of Royston and by continued investment in commercial initiatives to drive growth.

Display Solutions Segment operating income of $13.0 million in the three months ended September 30, 2026, increased 51% from the same period of fiscal 2026. The increase in operating income was driven by the increase in net sales and favorable program pricing and prudent cost management.

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Lighting Segment net sales of $64.8 million in the three months ended September 30, 2026, decreased 6% compared to net sales of $69.1 million in the same period in fiscal 2026. The 6% decline in net sales reflects soft demand across the broader commercial and industrial markets. Sales to the refueling/c-store, banking, and sports vertical increased from the same quarter last fiscal year and were offset by a decline in sales in other verticals. The Company maintains a favorable position in the parking, small retail, warehouse, and automotive verticals.

Gross profit of $21.9 million in the three months ended September 30, 2026, decreased 6% from the same period of fiscal 2026. While sales declined, gross profit margin was maintained as a result of aligning selling price with material input costs inflation.

Operating expenses of $14.3 millionin the three months ended September 30, 2026, decreased 2% from the same period of fiscal 2026, driven mostly by a decrease in agent commission expense resulting from lower sales.

Lighting Segment operating income of $7.5 million for the three months ended September 30, 2026, decreased 12% from operating income of $8.5 million in the same period of fiscal 2026 primarily driven by decreased net sales.

The gross profit relates to the change in the intercompany profit in inventory elimination.

Operating expenses of $6.4 million in the three months ended September 30, 2026, increased 3% from $6.2 million from the same period of fiscal 2026. The increase was primarily driven by an increase in wage and benefit costs.

Consolidated Results

The Company reported $3.9 million and $0.7 million of net interest expense in the three months ended September 30, 2026, and September 30, 2025, respectively. The increase in interest expense is the result of the acquisition of Royston in the third quarter of fiscal 2026. The Company also recorded other expense of $0.1 million and $0.5 million in the three months ended September 30, 2026, and September 30, 2025, respectively, both of which is related to net foreign exchange currency transaction gains and losses through the Company’s Mexican and Canadian subsidiaries.

The $3.1 million of income tax expense in the three months ended September 30, 2026, represents a consolidated effective tax rate of 30.0%. The $2.4 million of income tax expense in the three months ended September 30, 2025, represents a consolidated effective tax rate of 25.1%. Impacting the fiscal 2027 first quarter effective tax rate was the unfavorable tax treatment of executive compensation.

The Company reported net income of $7.1 million in the three months ended September 30, 2026, compared to net income of $7.3 million in the three months ended September 30, 2025. Non-GAAP adjusted net income was $11.6 million for the three months ended September 30, 2026, compared to adjusted net income of $9.7 million for the three months ended September 30, 2025 (Refer to the Non-GAAP tables above). The increase in Non-GAAP adjusted net income is primarily the result of an increase in net sales. Diluted adjusted earnings per share of $0.19 was reported in the three months ended September 30, 2026, compared to $0.23 diluted adjusted earnings per share in the same period of fiscal 2026. The weighted average common shares outstanding for purposes of computing diluted earnings per share in the three months ended September 30, 2026, were 37,888,000 shares compared to 31,381,000 shares in the same period last year.

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Liquidity and Capital Resources

The Company considers its level of cash on hand, borrowing capacity, current ratio and working capital levels to be its most important measures of short-term liquidity. For long-term liquidity indicators, the Company believes its ratio of long-term debt to equity and our historical levels of net cash flows from operating activities to be the most important measures.

At September 30, 2026, the Company had working capital of $144.0 million compared to $146.0 million at June 30, 2026. The ratio of current assets to current liabilities was 2.0 to 1 as of September 30, 2026, and as of June 30, 2026. The decrease in working capital from June 30, 2026, to September 30, 2026, is primarily driven by a $7.7 million decrease in net accounts receivable partially offset by a $5.6 million decrease in current liabilities.

Net accounts receivable was $143.5 million and $151.2 million at September 30, 2026, and June 30, 2026, respectively. DSO decreased to 61 days at September 30, 2026, from 65 days at June 30, 2026. The decrease in net accounts receivable is the result of lower sales in the first quarter of fiscal 2027 compared to the fourth quarter of fiscal 2026.

Net inventories of $114.4 million at September 30, 2026, increased $2.1 million from $112.3 million at June 30, 2026. Lighting Segment net inventory increased $1.7 million, and net inventory in the Display Solutions Segment increased $0.4 million. The Company manages inventory levels to meet customer demands.

Cash generated from operations and borrowing capacity under the Company’s line of credit is its primary source of liquidity. Our credit facility consists of a $200 million term loan and $150 million secured revolving line of credit. Both facilities expire in the third quarter of fiscal 2031. As of September 30, 2026, $109.8 million of the credit facility was available. The Company is in compliance with all of its loan covenants as of September 30, 2026. The $350 million credit facility plus cash flows from operating activities are adequate for operational and capital expenditure needs for the next 12 months.

The Company generated $15.2 million of cash from operating activities in the three months ended September 30, 2026, compared to $0.7 million of cash generated from operating activities in the same period in fiscal 2026. The Company continues to proactively manage its working capital while generating positive cash flow from earnings.

The Company generated $0.6 million and consumed $0.7 million of cash related to investing activities in the three months ended September 30, 2026, and September 30, 2025, respectively. The $0.6 million generation of cash was the result of a $2.0 million recovery of purchase price related to the Royston acquisition. The Company invested $1.4 million and $1.0 million in capital assets as of during the period ending September 30, 2026, and September 30, 2025, respectively, most of which related to investments in equipment and tooling to support sales growth.

The Company consumed cash of $17.2 million in the three months ended September 30, 2026, compared to a generation of cash of $3.9 million in the three months ended September 30, 2025, related to financing activities. The improvement in the generation of cash flow from operations in the first quarter of fiscal 2027 allowed the Company to reduce its debt by $15.7 million. Contributing favorably to cash flow from financing activities was the generation of cash related to the proceeds from the exercise of stock options of $0.5 million and $3.0 million in the first quarters of fiscal 2027, and 2026, respectively. Cash dividends paid to shareholders increased from $1.5 million in the first quarter of fiscal 2026 compared to $1.9 million in the first quarter of fiscal 2027.

The Company has on its balance sheet financial instruments consisting primarily of cash and cash equivalents, revolving lines of credit, and long-term debt. The fair value of these financial instruments approximates carrying value because of their short-term maturity and/or variable, market-driven interest rates.

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Off-Balance Sheet Arrangements

The Company has no financial instruments with off-balance sheet risk and have no off-balance sheet arrangements.

Cash Dividends

In November 2026, the Board of Directors declared a regular quarterly cash dividend of $0.05 per share payable November 24, 2026, to shareholders of record as of November 16, 2026. The indicated annual cash dividend rate for fiscal 2027 is $0.20 per share. The Board of Directors has adopted a policy regarding dividends which indicates that dividends will be determined by the Board of Directors in its discretion based upon its evaluation of earnings, cash flow requirements, financial condition, debt levels, stock repurchases, future business developments and opportunities, and other factors deemed relevant.

Critical Accounting Policies and Estimates

A summary of our significant accounting policies is included in Note 1 to the audited consolidated financial statements of the Company’s fiscal 2026 Annual Report on Form 10-K.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our exposure to market risk since June 30, 2026. Additional information can be found in Item 7A, Quantitative and Qualitative Disclosures About Market Risk, which appears on page 20 of the Annual Report on Form 10-K for the fiscal year ended June 30, 2026.

ITEM 4.CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as such term is defined Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), that are designed to ensure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized, and reported within required time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

We conducted, under the supervision of our management, including the Chief Executive Officer and Chief Financial Officer, an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based upon our evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2026, our disclosure controls and procedures were effective. Management believes that the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q are fairly presented in all material respects in accordance with GAAP for interim financial statements, and the Company’s Chief Executive Officer and Chief Financial Officer have certified that, based on their knowledge, the condensed consolidated financial statements included in this report fairly present in all material respects the Company’s financial condition, results of operations and cash flows for each of the periods presented in this report.

Changes in Internal Control

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter ended September 30, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II.OTHER INFORMATION

ITEM 5.OTHER INFORMATION

None.

ITEM 6.EXHIBITS

Exhibits:

* Management Compensatory Agreement

++ Schedules and exhibits have been omitted pursuant to Item 601(a)(5) and / or Item 601(b)(10)(iv) of Regulation S-K. The Company hereby undertakes to furnish supplemental copies of any of the omitted schedules and exhibits to the SEC upon its request.

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SIGNATURES</div>

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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